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Purchased

Set and Forget!

  • 5+5+5 year lease
  • Annual income of $350,000 pa + outs + GST
  • Tenanted by Australia’s ninth largest company (Wesfamers-owned)

Purchase Details

Asking Price

$6,500,000

Purchase Price

$6,075,000

Deposit (assuming 70% debt) - 30%

$2,126,250

Stamp Duty

$305,545

Building Report*

$900

Solicitor Costs

$9,000

Valuation

$5,000

Total Cash Required

$2,446,695

Purchase Price + Purchasing Costs

$6,395,445

Net Annual Cash Flow Return

$360,810

Net Yield on Property

5.94%

Net Yield Accounting for Purchase Costs

5.64%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$2,446,695

Cost of loan (assume 3% pa on 70% debt):

$157,950

Return on Equity (pure cash flow return):

8.29%

Return on Equity with a 5% Capital Growth Rate:

20.71%

Return on Equity with a 7% Capital Growth Rate:

25.67%

Return on Equity with a 10% Capital Growth Rate:

33.12%

*approximate numbers

Building Type: Commercial
Building Area: 2,400m2

NLA: 6,128m2
WALE: 5

How we helped this client

This is a “Bunning’s” like strength of a property! Purchased off-market for a Rethink investing client. This is our clients second purchase with Rethink Investing. They were looking for a “set and forget” style commercial investment. This one has had the same tenant for over 15 years and they don’t look to be moving anytime soon. Hence why our client felt comfortable proceeding with this investment.

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